£350k supports KMD Enterprise’s store acquisitions and refurbishment
- £350k supports KMD Enterprise’s latest expansion while protecting cash flow
- Lombard’s funding helps KMD outfit its existing and newly acquired stores
- KMD increases turnover through expansion
KMD Enterprise Ltd operates convenience stores; many as a franchise of Nisa-Today’s stores. Established over 20 years ago by brothers Paresh and Ashis Patel, the business has grown into a multi-million pound operation with sites in central London, the Home Counties and Lancashire.
KMD was looking for a medium and long-term funding solution to support store acquisitions and to refurbish and re-brand retail units. It was important to the company to expand while protecting its cash flow, and so it used conventional bank borrowing to support the property acquisitions and Lombard’s asset finance to equip the shops. This mix of funding supported its strategy of continued expansion at a controlled level.
Damian Dunphy, Lombard Senior Relationship Manager, explains, “Lombard was introduced to KMD in 2002 and was brought in to support its latest venture. We created a £350k credit line for shop fittings including an £150k refrigeration unit, shelving and counters.
The funding was mirrored in line with the depreciation of the assets and I worked closely with KMD’s contractor to deliver the equipment according to the schedule.” The funding helped enable KMD to outfit its existing stores and acquire new sites. Lombard’s finance solution supported the company’s policy of protecting cash flow while allowing them to expand and create new opportunities to increase revenue. Paresh Patel, Co-founder of KMD Enterprise Ltd, explains, “We refresh our stores as and when they need it, but this latest expansion also meant we had two new stores we needed to equip. Lombard’s asset finance helped us spread the cost of fitting out the stores and by freeing up cash flow we now also have more flexibility should anything else come up, such as another expansion or everyday maintenance.”
For more information about how Lombard could help your business grow, please call 0800 028 7164. Type Talk 18001 0800 028 7164.
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